Over the years, South Africa has experienced a barrage of labour strike action across various sectors. Many businesses have felt the effects of worker protests in the country, including the warehousing, transport, logistics and manufacturing industries.
So, what can businesses do to try and minimise this risk in a country that experiences economic volatility from strikes and industrial action? Well, partnering with an expert staffing agency may be the right solution.
Hiring labour staff through a staffing agency ensures that companies can focus on their core business functions while ensuring that industrial action does not impact vital operations. It only makes sense to outsource labour, and slowly, companies are becoming more aware of this fact.
This article explores the effects of strike action on businesses and their employees and how your company can rise above the challenges through staffing solutions.
If you would like to learn more about leveraging expert staffing solutions, contact MASA today and connect with a leading staffing agency and labour broker in South Africa and beyond.
The effects of strikes on businesses and employees
Strikes in South Africa are becoming more common, affecting the local economy and businesses and employees alike. Strikes by unhappy workers could further strain employment relationships between both parties and affect the overall teamwork and profitability of the company.
Companies can also suffer from production and financial losses, negatively impacting consumer confidence and trust. What effect does this have on the employers?
Effects on employers
Whether a strike is legal or illegal, it will affect the business. Therefore, it is imperative for employers to know their rights and keep up to date with current labour laws and legislation.
Some businesses may hire workers to replace the striking employees and perhaps increase shifts if the strike continues for an extended period. It is essential that part-time/temporary workers have a contract by law.
The employer does not have to pay striking workers for days not worked. If the strike is illegal, this could constitute a fair dismissal.
Effects on employees
Striking employees belonging to a union may be obligated to strike when the union determines. They could be at risk of losing not only wages but benefits such as medical aid insurance and sick and holiday pay if the strike drags on for an extended period.
If an employee is a union member and does not want to partake in the strike, they could be at risk of being intimidated by union members. Members belonging to a union in a legal strike are generally protected from dismissal.
Effects on the economy
The economy will feel the effects of striking in the immediate and long term future as strikes are appearing to re-occur in some sectors and, in some cases, have become violent. The South African economy is vulnerable at this point, and striking season could harm the country’s investment reputation internationally.
Economists agree that it is difficult to calculate the effect of strikes on the economy, but it is clear that they are adetrimental to the country and its workers. GDP growth will be affected, and the consequences of higher wages in specific sectors would inevitably lead to higher inflation.
To minimise your risk of industrial action, you should consider partnering with a staffing solutions agency that ensures well-vetted potential employees and can assist in the process of employment to allow you to focus on your core business functions.
Labour outsourcing provides a smooth process of employment from recruitment to placement.
Labour Outsourcing & Labour Broking are not to be confused
Many don’t understand that labour broking and labour outsourcing are different. Here are the key differences:
- Labour broking – temporary employees are provided work for a fixed contract period. Labour broking includes no extra benefits for the employee, and they are no longer employed when the contract ends.
- Labour outsourcing – outsourced employees are added to your active workforce with all the perks of a permanent employee. Even if there is a fixed-term contract in place, the employee is simply deployed to another business or project once it expires. Alternatively, the company can decide to renew the contract with that specific employee.
It’s all about Focusing on Your Core Business Functions
It’s highly beneficial to outsource labour to a trusted staffing agency with experience and a working understanding of the complexities and legalities of human resources. Key role players in the business are then able to focus on growing their core business while enjoying the support benefits of an HR team that’s effective and efficient.
There’s absolutely no reason to believe that outsourcing labour to a staffing specialist means losing control over the business.
Staffing issues, activities, administrative tasks, and various other HR functions don’t generate profits for the business, but they do take time. By outsourcing labour, companies can save time and money.
A company that handles its staffing in-house often has to struggle with poor fits, underperforming, and even those that don’t fit in with the culture and values of the business.
When labour is outsourced, the staffing agency will be responsible for replacing workers that don’t perform or fit in. They will also handle all HR and employment-related matters of the staff members they provide.
The outsourced staff members are bound by the terms of their private contract with the outsourcing firm and are less likely to be involved in strike action.
The MASA Services Difference
At MASA Services, we take our labour outsourcing function seriously. We understand just how important it is to work with staff members that are right for the job. Contact us today if you want assistance with labour outsourcing or similar matters!
Also, if you would like to learn more about our expert staffing solutions and labour outsourcing expertise, check out our article on How to Cut Down Labour Costs Through Temporary Staffing.